Delivering the roadmap from product sales to servitization

Funders need to change and adapt to take maximum advantage of the financing opportunities related to servitization. The transition from financing products to delivering outcomes is lengthy and challenging but with a clear focus new services can thrive, according to Nick Feasey, former director of funding and strategy at Lenovo Financial Services. Speaking at the International Asset Finance Network conference, before he left the role, he said: “There’s a huge opportunity and a lot of those cash customers are now asking about this type of model, which I think is great for the asset finance industry.”

Delivering the roadmap from product sales to servitization

Aug 21, 2019

LeasePlan’s H1 2019 net results severely impacted by new automotive business model

As LeasePlan comes to release its figures for Q2 2019, a closer look reveals that the company has been hit significantly by its recent investment in its new Car-as-a-service, and CarNext.com businesses. The company reported a net result of €32 million in Q2 2019, which totals a 79.1% reduction when compared to the significantly higher figure for Q2 2018, which stood at €152 million. Furthermore, LeasePlan reported an additional drop in underlying net result of 12.2% from €160.7 million at Q2 2018, to €141.1 million.

LeasePlan’s H1 2019 net results severely impacted by new automotive business model

Aug 22, 2019

Lack of available funding holds back a fifth of UK SMEs

Nearly a fifth (19%) of UK SMEs have missed a new opportunity in the past 12 months due to a lack of available funding, according to SME specialist bank Aldermore The bank’s latest Future Attitudes study shows medium-sized businesses are worst hit, with over a quarter (28%) saying they have been affected. The report, which surveyed over a thousand business decision-makers across the UK, found that those impacted are missing out on income worth an average of £76,888 each year.

Lack of available funding holds back a fifth of UK SMEs

Aug 22, 2019

Motor finance must adapt to survive, says MotoNovo

The motor finance industry is facing pressure on margins, investor concern and increasing compliance costs, forcing some to exit and others to adapt, according to MotoNovo Finance. Barclays Partner Finance announced its plans to exit the motor finance market and issued termination notices to dealer partners in July this year following a “strategic review”. Mark Standish MotoNovo chief executive, reiterated that his company is dedicated to the sector, but said the automotive finance industry must pay attention to developments like Barclays’ exit.

Motor finance must adapt to survive, says MotoNovo

Aug 22, 2019

AF50 2019 reveals UK’s biggest asset finance companies

The current leaders of the UK’s dynamic asset finance market have been revealed in the exclusive 2019 Asset Finance 50. The annual AF50 is the UK’s most influential survey of business and equipment lessors, which tracks the health of the market and identifies the key trends that are set to have an impact on the sector. This year’s report, sponsored by Alfa, reveals that the total net investment in leasing for the top 50 firms is £38 billion, up 6.2% from £35.9 billion in last year’s report. The top 10 firms represent 60.6% of the AF50, up from 59.3% last year, with the largest company, Lombard, accounting for 15% of the market. In addition to profiling the largest companies in the UK asset finance arena, the report includes in-depth analysis of the industry.

AF50 2019 reveals UK’s biggest asset finance companies

May 22, 2019

Little progress on blockchain development for equipment finance, says Alta Group

The equipment finance industry is being left behind by other sectors on blockchain development, according to the latest Monitor report from The Alta Group. A blockchain is a data structure that makes it possible to create a digital ledger of data and share it among a network of independent parties. A suite of distributed ledger technologies that can be programmed to record and track anything of value. Valerie L. Gerard, senior managing director and leader of the Strategy & Competitive Alignment Practice for The Alta Group’s consulting services, said that while other sectors are diving or wading in to blockchain development, equipment finance companies aren’t there yet.

Little progress on blockchain development for equipment finance, says Alta Group

Aug 22, 2019

Electric aircraft development is slowly taking off

The fledgling manned electric aircraft industry is in need of patient investors and asset financing as companies start on the road to developing new technology, according to IDTechEx. The emerging technology research company said those companies that have started off with simple applications are seeing some success with Bye Aerospace attracting $165 million in business in one year. Another company, Ampaire has advanced electric aircraft technology available but it has started with a relatively straightforward replacement of one engine in a small Cessna propellor plane to create hybrid electric versions. Raghu Das, IDTechEx chief executive, said the pure electric aviation industry needs patient investors as it will take time for larger commercial applications.

Electric aircraft development is slowly taking off

Aug 22, 2019

High Street banks at the bottom of the pack for convenience for young people

A survey of Generation Z people in the UK has revealed that tech-based brands are three times more popular than traditional banks when it comes down to who they think will be looking after their finances in the future. Generation Z are the people born between the late 1990s and early 2000s and while it may sound obvious that younger people will be more tech-focussed, it highlights how much work the High Street banks need to do to play catch up. The survey was of a nationally representative sample of 2,051 under 25-year olds in the UK commissioned by IT company ThoughtWorks in June. At a time when the majority of Britons prefer to shop online, ThoughtWorks asked its panel of under 25 year-olds which type of companies they thought would offer them the most advanced, real-time services that would make money management a simple and easy everyday task.

High Street banks at the bottom of the pack for convenience for young people

Aug 21, 2019

Simply going for gold with £323,000 funding for mining equipment finance

Simply, the SME equipment finance specialist, has recently provided £323,000 to Scotgold Resources to buy crucial plant equipment to extract increasing amounts of the precious metal in Scotland. Scotgold is a gold exploration and development company that owns the Cononish mine in Scotland, near Loch Lomond. Cononish is the first commercial gold mine in Scotland. It produced gold for the first time in August 2016 and now aims to extract more than half a million tonnes of ore over the next 10 years.

Simply going for gold with £323,000 funding for mining equipment finance

Aug 21, 2019

Uber partners with Fair.com to reward drivers with payment discounts

Uber Technologies has expanded its rewards programme for US drivers so they can earn up to $40 a month in credits to redeem against Fair.com vehicle payments. Drivers can increase their Fair credit based on their Uber Pro tier: partner, gold, platinum and diamond. Gold equates to $10 in Fair Credits, Platinum is $20 and Diamond is $40. In order to qualify for Uber Pro, drivers must maintain a rating of 4.85 or above.

Uber partners with Fair.com to reward drivers with payment discounts

Aug 21, 2019

Fleet Evolution sees electric vehicle enquiry surge following removal of BIK

Fleet Evolution, a Midlands-based salary sacrifice green car scheme specialist, has recorded a 400% surge in electric car enquiries following the Government’s decision to remove benefit in kind tax from 2020/21. Andy Leech, Fleet Evolution managing director, said the message of 0% BIK has sent a clear signal to the company car market.

Fleet Evolution sees electric vehicle enquiry surge following removal of BIK

Aug 21, 2019

Investec and Quantum join forces to accelerate broker growth

Investec Asset Finance and Quantum Funding have joined their broker manager teams in order to accelerate the team’s growth with broker customers. Quantum Funding is a subsidiary of Investec that specialises in asset finance for SMEs. As of August 2019 each broker manager will represent both Investec and Quantum and be aligned to a specific region within the UK.

Investec and Quantum join forces to accelerate broker growth

Aug 21, 2019

ALD Automotive grows global fleet by 7.2% in H1 2019

ALD Automotive has posted growth in its global fleet of 7.2% to reach 1.7 million in the first half of the year, according to its latest results. Leasing contract and services margins increased by 4.4% to €638 million and gross operating income increased slightly by 1.6% to €681.1m. Private lease fleet showed strong growth in H1 2019, up 36%, reaching 133,000 contracts at the end of June 2019. ALD is confident of reaching its target of 150,000 contracts with private individuals by the end of the year.

ALD Automotive grows global fleet by 7.2% in H1 2019

Aug 21, 2019

Fintechs invited to compete for £1.5m in open banking innovation challenge

Fintech innovators are being invited to create new consumer open banking solutions as part of a competition to win £1.5 million. Innovation foundation Nesta Challenges put the Open Up 2020 challenge and prize fund together in partnership with Open Banking Limited to encourage innovation in the sector. Open Banking Ltd was set up by the Competition & Markets Authority (CMA) in September 2016 to create software standards and industry guidelines that drive competition and innovation in UK retail banking. Research conducted to mark the launch of Open Up 2020 found that millions of people across the country are currently struggling to stay on top of their finances.

Fintechs invited to compete for £1.5m in open banking innovation challenge

Aug 21, 2019

BNP Paribas Leasing Solutions UK to offer equipment finance to food and drink industry

BNP Paribas Leasing Solutions UK has set up a specialist division in Basingstoke to expand its agriculture division to include food and drink equipment finance. The division will be focussing on offering finance to help the food and drink industry fund the latest machinery, packaging and processing equipment. The team is headed-up by Paul Baker, head of food and agriculture along with Nicky Easton and Neil Curtis who are jointly responsible for business development.

BNP Paribas Leasing Solutions UK to offer equipment finance to food and drink industry

Aug 21, 2019

CIT to acquire Mutual of Omaha Bank for $1 billion

CIT Bank N.A has announced a definitive agreement to acquire Mutual of Omaha Bank in a deal worth $1 billion. CIT Bank is a subsidiary of CIT Group and Mutual of Omaha is a savings bank subsidiary of Mutual. The acquisition is expected to close in Q1 of 2020, subject to regulatory approval and satisfaction of other customary closing conditions. The agreement excludes Mutual's mortgage subsidiary, Synergy One Lending.

CIT to acquire Mutual of Omaha Bank for $1 billion

Aug 21, 2019

FIBA launches video channel to bring brokers and partners closer together

The Financial Intermediary and Broker Association has launched its own online FIBA TV video channel on its website to highlight case studies and to bring brokers and partners closer together. The videos will be hosted on FIBA’s website with its own FIBA TV section and the first three lender interviews will be prefaced by an opening video of executive chairman, Adam Tyler talking about FIBA, its ethos and plans for the future. The first lenders to take part are Precise Mortgages, Roma Finance and Bridging VAT.